Colorado Legislative Council Staff

STATE

REVISED FISCAL NOTE

(Replaces Fiscal Note dated February 1, 1998)

General Fund Expenditure Impact

Capital Construction Fund Exempt Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-014

Rep. Gotlieb

Sen. Ament

Date:

Bill Status:

Fiscal Analyst:

February 16, 1998

House Appropriations

Steve Tammeus (866-2756)

 

TITLE:            CONCERNING STATE FUNDING FOR EMERGENCY CAPITAL CONSTRUCTION PROJECTS FOR POLITICAL SUBDIVISIONS OF THE STATE.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1997-98

FY 1998-99

FY 1999-00

State Revenues

General Fund

Other Fund

 



 



 

State Expenditures

General Fund - transfer to Account

School District Emergency Capital Construction Project Account (in the Capital Construction Fund)

General Fund - Department of Personnel


$3,000,000






$3,000,000

$91,233


$3,000,000


$3,000,000

$82,633

FTE Position Change

None

2.0 FTE

2.0 FTE

Local Government Impact — None


            This bill, as amended by the House Finance Committee (House Journal, February 13, 1998, pages 517 to 520), allows school districts to submit requests to the Department of Personnel for emergency capital construction project funds. The bill specifies the content of the request including:

 

               a certified report that the condition of the building is hazardous to occupants;

               a description of the scope of the project;

               the total amount of itemized costs;

               evidence the school district does not have sufficient funds to finance the emergency project, and

               any other information the department may require.


            The bill authorizes the Department of Personnel to promulgate rules, and requires the department to review each request and determine whether the request should be designated as an emergency project. The bill authorizes the department to review findings of the certified reports and perform building inspections. To be designated as an emergency project, the department must find that conditions exist in the building that are, or will be, hazardous to the health or safety of persons using or occupying the facility.


            The bill requires the General Assembly to annually appropriate an amount from the School District Emergency Capital Construction Project Account to the Department of Personnel. The bill requires the department to supervise and be responsible for all expenditures of the appropriation.


            When a school district’s emergency project is funded, the bill requires the school district to enter into agreements with architects, engineers, or consultants to complete the emergency project. The department shall be responsible for disbursing moneys from the fund for the direct payment of all expenditures associated with the agreements to complete the project. The bill requires the department to provide an annual report to the Capital Development Committee regarding all emergency capital construction projects.


            The bill creates the School District Emergency Capital Construction Project Account within the Capital Construction Fund. The moneys in the account are to consist of moneys that the General Assembly may appropriate to the account. All unexpended moneys at the end of a fiscal year are to remain in the account, and all investment earnings of the account are to remain in the account.


            The bill appropriates $3,000,000 from the General Fund to the account for FY 1997-98. The bill appropriates $3,000,000 from the account to the Department of Personnel for FY 1998-99. The bill also appropriates 2.0 FTE and $91,233 General Fund to the Department of Personnel for FY 1998-99.


            The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.


            This bill will affect state expenditures. Therefore, the bill is assessed as having a state fiscal impact.



State Expenditures


            The state expenditures for the Department of Personnel for FY 1998-99 and FY 1999-2000 to implement and administer the provisions of this bill are based upon the following assumptions:

 

               that the bill will become law in August, 1998;

               that of the 176 school districts in the state, 10 will annually submit requests to the Department of Personnel each year ;

               that 5 of those requests will annually qualify for emergency funding;

               that the aggregate cost of those qualifying requests will annually be $3 million; and

               that the department’s costs of administering the program will be General Fund.


            Table 1 provides a summary of the departments administrative expenditures for FY 1998-99 and FY 1999-2000 to implement the provisions of the bill.


Department of Personnel

 School District Emergency Capital Construction Project

 

FY 1998-99

FY 1999-2000

Personal Services

Architect II (grade 105, step 1)

Admin Asst I (grade 60, step 1)

Subtotal

PERA/Medicare

Total


1.0 FTE - $50,508

1.0 FTE - 16,896

$67,404

8,729

$76,133


1.0 FTE - $50,508

1.0 FTE - 16,896

$67,404

8,729

$76,133

Operating and Travel Expenses

6,500

6,500

Computer and Furniture

8,600

0

Total Expenses

2.0 FTE - $91,233

2.0 FTE - $82,633


Expenditures Not Shown


            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:

 

               health and life insurance costs of $4,424;

               short-term disability costs of $142;

               inflationary cost factors;

               leased space; and

               indirect costs.



Spending Authority


            This fiscal note would imply that the Department of Personnel would require a General Fund appropriation of 2.0 FTE and $91,233 for FY 1998-99 to implement the provisions of the bill. The bill would require a General Fund appropriation of $3,000,000 to the School District Emergency Capital Construction Project Account for FY 1997-98. The bill would also require an appropriation of $3,000,000 from the School District Emergency Capital Construction Project Account to the Department of Personnel for FY 1998-99.



Departments Contacted


            Personnel                    Education                   Law                OSPB